Smaller operators must think smart to keep competitive edge, says AGR

Source: Energy Digital

Date :23/06/2008 17:08:09

AGR Petroleum Services, the leading well management company, has urged smaller, independent operators to be ‘drill-ready’ if they are going to compete with larger rivals in the North Sea.

Representatives from the Aberdeen-based firm met with industry professionals in London on Thursday, 19 June, where they highlighted the toughening market conditions in the drilling sector.

Soaring drilling rig costs and short supply of available rigs are causing problems for smaller operators who may only have one or two wells to be drilled, the company says.

New approach

In a bid to tackle this, AGR Petroleum has pioneered multi-operator Rig Campaigns which allow several wells to be drilled for a number of clients during one project. The system works by AGR taking a rig on long-term hire and planning several operators' drilling activity in sequence.

However the company has warned operators that in order to take advantage of rig availability, operators should make sure they have all the planning and regulatory work in place.

“Smaller, independent operators are increasingly key to the future longevity of North Sea activity,” said Martin Ellins (pictured), AGR Petroleum’s UK and West Africa manager. “It is essential that they consider a new and more flexible approach to drilling activity than has traditionally been the case if they are going to successfully compete with the larger operators.”